NPS for Central & State Government Employees

The National Pension System (NPS) is the mandatory retirement savings scheme for employees who joined the Central Government service on or after 1st January 2004 (except Armed Forces). Many State Governments have also adopted NPS for their employees, making it one of the largest pension initiatives in India.

    Key Features of Government NPS
  • Defined Contribution Model – Both employee and government contribute towards the retirement corpus.
    • Contribution Structure –
    • Employee Contribution: Minimum 10% of Basic Salary + Dearness Allowance (DA)
    • Government Contribution: Up to 14% of Basic Salary + DA
  • Investment Flexibility – Investments spread across Equity, Corporate Bonds and Government Securities.
  • Regulated by PFRDA – Ensures safety, transparency and accountability.
    Benefits for Government Employees
  • Tax Savings – Contributions are eligible for deductions under Section 80CCD (2) of the Income Tax Act.
  • Retirement Security – Build a sizeable retirement corpus during your career and receive pension income post-retirement.
  • Portability – NPS account remains active even if you are transferred across states or departments.
  • Digital Access – Contributions, statements and withdrawals can be managed online via CRA system.